>risky enterprises can be funded even if 1 out of ten or 1 out of hundred actually are successful
correct me if i'm wrong, Europe is dominated by legacy business/banks that normally won't take such risk. legacy business like BMW. European and Asian want to see you have some success or already making money before they invest. while American will throw money into something that just an idea.
The entire culture is based around "legacy" and "experience". Truth is, Europeans are extremely risk-averse and favor legacy, with grants, laws and such reflecting that.
That said, Europeans will throw money at an "idea", as long as that idea is approved by peers. They'll even die with that idea, once invested.
It's dominated by businesses where network effects are not in play; commodities, specialist equipment, medicine, biotech, hardware, etc. If there's a cultural, legal, or network element to the business, then the fragmentation of the European market puts it at a massive disadvantage. Investor knows it and thus avoid investing in those sectors because they don't want to fight uphill battles
correct me if i'm wrong, Europe is dominated by legacy business/banks that normally won't take such risk. legacy business like BMW. European and Asian want to see you have some success or already making money before they invest. while American will throw money into something that just an idea.